Bitcoin slows downs as it makes its way back from the high area of around $30,000. The top crypto by market cap still records profits over the past week (3%) but could re-test support at lower levels.

Related Reading | Bitcoin Bounces Back Past $40,000, But May Struggle To Maintain Position

At the time of writing, Bitcoin trades at $41,300 with sideways movement over the past day. The cryptocurrency continues to trade in a tight range but soon could see an increase in volatility.

Bitcoin BTC BTCUSD
BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview

Data from Material Indicators (MI) records short-term resistance as BTC’s price is above its current levels. There are over $5 million in asks orders from $41,300 to around $41,400. This could suppress the price from continuing its bullish momentum.

On the other side of the trade, there is major support for BTC’s price at $39,000. At these levels, the cryptocurrency records $9 million in bid orders with much more liquidity at lower levels. This suggests BTC could strongly rebound if it returns to that area.

Bitcoin BTC BTCUSD
BTC with strong support at $39K (bid orders in red and yellow below the price). Source: Material Indicators

A pseudonym trader recently pointed out that BTC’s price has seen constant rejection from the 200 Exponential Moving Average (EMA), a level often associated with trend direction for an asset. BTC’s current EMA stands at around $42,000.

In that sense, Bitcoin needs to break above that price point to continue upwards into further resistance. This potentially will be located at around $45,000, and $48,000. The…


Source link

Leave a Reply

Your email address will not be published.

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed